5 Reasons Why Physicians Should Take a Personal Loan

A personal loan is an instant mode of finance to address a range of needs. Due to digital disruption,

applying for a personal loan is a matter of minutes these days. Here are five reasons why physicians and medical practitioners should avail a personal loan for doctors.

1. Easy to avail

Be it going on a vacation, paying for you or your child’s overseas education, meeting wedding expenses, renovating your home interiors or buying new home appliances, a personal loan for physicians helps them address various requirements.

Many lenders have taken the process online, whereby one needs to fill in a simple application form and submit the relevant documents. Once the underwriting team verifies the details and completes due diligence, the loan amount is sanctioned and disbursed.

2. A large amount

A personal loan for physicians offers access to a large number of funds. Various NBFCs in India offers an amount up to Rs.30 lakh. This amount is sufficient to address a range of personal needs.

An important point to note here is that the amount sanctioned depends on an individual’s financial

habits and credit score. A high credit score helps doctors to qualify for a bigger amount and vice versa. Similarly, being prudent with one’s financial habits such as keeping credit card utilization ratio low, paying outstanding dues on time, etc., helps in the borrowing exercise.

3. Collateral-free loans

A personal loan is an unsecured mode of finance. It means there’s no need to pledge an asset as

collateral while availing it. Unlike secured loans such as a home loan or a loan against property where an asset needs to be mortgaged, a personal loan doesn’t have any such binding.

It provides peace of mind and also expedites the loan process as collateral involves legal formalities

that can delay the entire borrowing exercise.

4. Flexibility to withdraw funds as and when needed

New-age personal loans for physicians offer the flexibility to withdraw funds as and when required. For example, NBFCs are providing a Flexi Loan facility that allows one to borrow from the approved limit as and when needed. There’s no need to make multiple loan applications each time one needs money.

Also, interest is charged only on the amount utilized and not the entire limit. This keeps EMIs low and helps in better management of finances. Physicians availing the loan also have the option to repay the principal at the end of the tenor.

5. Minimal documentation and quick processing

Another reason for you to avail a personal loan for physicians is that it involves easy application, minimal documentation along with instant approval, and speedy loan disbursal. Though the list may vary across lenders, the common documents that can be asked for are:

- KYC documents

- Bank statement

- IT returns

Today, most lenders specify the documents needed on their websites. With doorstep pick-up of

documents, NBFCs further makes the borrowing process quick and easy.

Before applying for physician loan, it’s important to compare offerings from multiple lenders from loan aggregator portals to make an informed choice.